Chiquita Brands conditionally calls $138.75 million 7 7/8% notes

By Marisa Wong

Madison, Wis., Dec. 22 – Chiquita Brands International, Inc. and Chiquita Brands LLC have decided to redeem $138.75 million of their 7 7/8% senior secured notes due 2021 on Jan. 21, according to an 8-K filing with the Securities and Exchange Commission.

The issuers delivered a notice of redemption to trustee Wells Fargo Bank, NA on Monday.

The companies will redeem the notes at a redemption price of 107.875 plus accrued interest to, but not including, the redemption date.

The redemption is conditioned on the closing of Chiquita’s merger with Cavendish Acquisition Corp., an affiliate of Cutrale-Safra Group, and the receipt by Chiquita of net cash proceeds in an amount equal to at least $149.7 million from the sale of its equity interests.

The issuers may, at their discretion, delay the redemption date until the redemption conditions have been satisfied or rescind the notice if the conditions are not met by the redemption date.

Chiquita is a Charlotte, N.C.-based marketer and distributor of bananas, fresh produce and packaged salads.

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